FULL DISCLOSURE: This is sponsored content for First Majestic Silver.
First Majestic Silver (NYSE: AG) (TSX: AG) released an exploration update Wednesday for its San Dimas silver-gold mine in Durango, Mexico, reporting high grade intercepts across several vein systems and two areas that widen the district’s exploration footprint.
The company has completed roughly 89,000 metres of a planned 117,000 metres this year. The work to date has been split between resource conversion drilling in established systems and resource addition step-outs across the West, Central and Graben blocks, with follow-up at El Cristo and target testing in the East/Arana block.
Highlight assay results include:
- LUZ26X-02: 2,625 g/t silver and 58.25 g/t gold over 1.30 metres from a depth of 511.30 metres
- LUZ26X-03: 1,895 g/t silver and 28.91 g/t gold over 1.69 metres from a depth of 391.15 metres
- ELI26X-10: 2,604 g/t silver and 43.08 g/t gold over 0.88 metres from a depth of 191.50 metres
- ELI26X-08: 1,377 g/t silver and 21.38 g/t gold over 2.04 metres from a depth of 198.50 metres
- CMNE26X-02: 588 g/t silver and 6.05 g/t gold over 1.58 metres from a depth of 327.00 metres
- SJE26X-10: 281 g/t silver and 2.81 g/t gold over 1.55 metres from a depth of 358.70 metres
The Sinaloa-Elia complex supplied much of the grade, including holes ELI26X-10 and ELI26X-08. Drilling pushed mineralization east, west and locally down dip beyond the edges of the current resource, while infill holes returned thick, high-grade hits that support moving inferred material into the indicated category and into future mine plans.
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The more interesting piece may be Convención, where reinterpreting historic vein and breccia intercepts near the Jessica vein pointed to a hanging wall structure. The first test returned five significant intercepts in seven holes about 100 metres north of Jessica, including SJE26X-10, which hit 281 g/t silver and 2.81 g/t gold over 1.55 metres. First Majestic calls it a potential near-term mining opportunity, and the vein is open in several directions.
In the West Block, Coronado and Carmen Escobosa continue to behave as a two-vein system, open for roughly 400 metres to the west of these new intercepts.
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“The latest drill results have returned multiple high-grade silver and gold intercepts from both resource-conversion and resource-addition programs, reinforcing the near-mine growth potential of established vein systems while expanding the exploration footprint at Convención and El Cristo,” said Chief Executive Officer Keith Neumeyer.
El Cristo, the southernmost of the historically mined areas on the property, is newer ground, and early holes on the Luz and Patricia veins returned the release’s highest silver (5,827 g/t) and silver equivalent (15,706 g/t) grades.
The update follows the early receipt of construction permits for the Santo Niño and Navidad portals at the company’s Santa Elena mine, where an additional $12 million this year funds about 800 metres of decline and 1,300 metres of ramp development.
First Majestic Silver last traded at $29.20 on the TSX.
FULL DISCLOSURE: First Majestic Silver is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of First Majestic Silver. The author has been compensated to cover First Majestic Silver on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
